CHINA OILFIELD SERVICES LIMITED (A joint stock limited company incorporated in the People s Republic of China with limited liability) (Stock Code:2883) OVERSEAS REGULATORY ANNOUNCEMENT FIRST QUARTER RESULTS This announcement is made pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The First Quarterly Report for 2011 of the Company is prepared in accordance with PRC Accounting Standards for Business Enterprises and has not been audited. April 28, 2011 As at the date of this announcement, the non-executive directors of the Company are Messrs. Liu Jian and Wu Mengfei; the executive directors of the Company are Messrs. Li Yong and Li Feilong; and the independent non-executive directors of the Company are Messrs. Tsui Yiu Wa, Fong Wo, Felix and Chen Quansheng.
China Oilfield Services Limited 2011 First Quarterly Report Stock Abbreviation: CHINA OILFIELD Stock Code: 601808 28 April 2011
Content 1 Important Notice... 1 2 Company Profile... 1 3 Significant Events... 5 4 Appendix... 9
1. Important Notice 1.1 The Board of Directors (the Board ), supervisory committee, and the directors, supervisors and senior management of China Oilfield Services Limited (the Company ) confirmed that there are no material omissions and misrepresentations or serious misleading statements in this report and accept join and several responsibility for the truthfulness, accuracy and completeness of the contents of the report. 1.2 All directors of the Company attended the Board meeting. 1.3 The First Quarterly Financial Report of the Company was unaudited. 1.4 Mr. Li Yong, Chief Executive Officer and President, Mr. Li Feilong, Executive Vice President and Chief Financial Officer, and Mr. Liu Zhenyu, General Manager of Accounting Department, have declared that they assure for the truthfulness and completeness of the financial statements in the report. 2. Company Profile 2.1 Major Accounting Data and Financial Indicators As at 31 March 2011 As at 31 December 2010 Currency: RMB Increase/Decrease(%) Total assets (million Yuan) 61,022.2 63,593.3 (4.0) Equity attributable to equity holders of the Parent (million Yuan) 26,484.6 25,589.6 3.5 Net assets per share attributable to equity holders of the Parent (Yuan per share) Net cash flow from operating activities (million Yuan) Net cash flow from operating activities per share (Yuan per share) 5.89 5.69 3.5 From the beginning of the year to end of the reporting period The Reporting Period Change over the corresponding period of last year (%) 1,238.8 (30.7) 0.28 (30.7) From the beginning of the year to end of the reporting period Change over the corresponding period of last year (%) Net profit attributable to equity holders of the Parent (million Yuan) 965.9 965.9 (1.2) Basic earnings per share (Yuan per share) 0.21 0.21 (1.2) Basic earnings per share after deduction of non-recurring gain and loss (Yuan per share) 0.21 0.21 (1.2) Diluted earnings per share (Yuan per share) 0.21 0.21 (1.2) Weighted average net assets earnings ratio (%) 3.70 3.70 Decreased 0.59% Ratio of weighted average net assets earnings after deduction of non-recurring gain and loss (%) 3.59 3.59 Decreased 0.69% 1
Non-recurring Gain and Loss Currency:RMB Unit: Yuan Items of non-recurring gain and loss Amount for the period ended 31 March 2011 Losses on disposal of non-current assets (740,461) Government grant credited to the income statement 23,958,106 Net amount of other non-operating income 12,948,462 Total of non-recurring gain and loss 36,166,107 Income tax effect (5,424,916) Net amounts affecting under non-recurring gain and loss 30,741,191 2.2 Number of shareholders and particulars of shareholding of the top 10 shareholders not subject to restrictions on sales as at the end of the reporting period Total number of shareholders at the end of the reporting period: A shares: 131,168 H shares: 244 Unit: Share Particulars of shareholding of the top 10 shareholders not subject to restrictions on sales Shares not subject to restrictions on sales as at Type of Name of shareholders (in full) the end of the reporting share period China National Offshore Oil Corporation 2,410,468,000 A Shares HongKong Securities Clearing Company Nominees Limited 1,531,553,899 H Shares ChinaAMC Prosperity Fund 15,217,818 A Shares ChinaAMC GARP Fund 13,739,803 A Shares ChinaAMC Dividend Fund 11,310,862 A Shares Penghua Dynamic Growth Fund (LOF) 8,126,589 A Shares Fortune SG Selected Sectors Fund 8,006,497 A Shares BOCOM Schroders Select Fund 7,935,256 A Shares ChinaAMC Blue Chip Core Fund 7,934,013 A Shares National Social Security Fund 104 7,500,000 A Shares Note: 1. Shares held by Hong Kong Securities Clearing Company (HKSCC) Nominees Limited were the sum of H-shares (by agent) traded in the trading platform of HKSCC Nominees Limited and in the accounts of H-share shareholders. 2. Save for ChinaAMC Prosperity Fund, ChinaAMC GARP Fund, ChinaAMC Dividend Fund and ChinaAMC Blue Chip Core Fund, which are all managed by China Asset Management Co., Ltd., to the knowledge of the Company, there were no connected relationships or concerted actions among the above top 10 shareholders not subject to restrictions on sales. 2
2.3 Operating results review In the first quarter of 2011, the Group actively dealt with market competition, strived hard to consolidate existing markets while keep exploring domestic and overseas new markets, and strengthened risk control. The revenue of the Group for the first quarter of 2011 reached RMB3,809.4 million, representing a decrease of 3.1% compared with RMB3,930.7 million for the corresponding period of last year. The net profit of the Group was RMB967.1 million, representing a decrease of 1.0% compared with RMB977.3 million for the corresponding period of last year. Basic earnings per share was RMB0.21. As at 31 March 2011, total assets of the Group were RMB61,022.2 million, representing a decrease of 4.0% from the beginning of this year; total liabilities were RMB34,536.1 million, representing a decrease of 9.1% from the beginning of this year; shareholders equity was RMB26,486.1 million, representing an increase of 3.5% from the beginning of this year. Operating information of the main segments as at 31 March 2011 is listed in the following table: Drilling Services For the period ended 31 March 2011 For the period ended 31 March 2010 Change Operating Days (Day) 2,225 2,115 5.2% Jack-up Drilling Rigs 1,997 1,911 4.5% Semi-submersible Drilling Rigs 228 204 11.8% Utilization Rate (Available Day) 94.3% 100.0% Decreased 5.7% Jack-up Drilling Rigs 93.7% 100.0% Decreased 6.3% Semi-submersible Drilling Rigs 100.0% 100.0% - Utilization Rate (Calendar Day) 92.6% 92.0% Increased 0.6% Jack-up Drilling Rigs 93.7% 94.1% Decreased 0.4% Semi-submersible Drilling Rigs 84.4% 75.6% Increased 8.8% Marine Support and Transportation Services For the period ended 31 March 2011 For the period ended 31 March 2010 Change Operating Days (Day) 6,620 6,580 0.6% Standby vessels 4,036 4,058 (0.5%) AHTS vessels 1,499 1,480 1.3% PSV vessels 450 450 - Utility vessels 297 343 (13.4%) Barges 338 249 35.7% Vessel Utilization Rate (Available Day) 98.9% 98.0% Increased 0.9% Standby vessels 100.0% 98.4% Increased 1.6% AHTS vessels 100.0% 95.7% Increased 4.3% 3
PSV vessels 100.0% 100.0% - Utility vessels 84.6% 100.0% Decreased 15.4% Barges 93.9% 100.0% Decreased 6.1% Vessel Utilization Rate (Calendar Day) 98.5% 93.9% Increased 4.6% Standby vessels 99.7% 96.2% Increased 3.5% AHTS vessels 100.0% 86.6% Increased 13.4% PSV vessels 100.0% 100.0% - Utility vessels 82.5% 95.3% Decreased 12.8% Barges 93.9% 92.1% Increased 1.8% Geophysical Services 2D Seismic Data For the period ended 31 March 2011 For the period ended 31 March 2010 Change (%) Data Collection (km) 5,540 1,018 444.2% Data Processing (km) 2,836 599 373.5% 3D Seismic Data Data Collection (km 2 ) 1,992 1,791 11.2% of which: submarine cable (km 2 ) 101-100.0% Data Processing (km 2 ) 1,310 909 44.1% As at 31 March 2011, the Group s drilling rigs operated 2,225 days, representing an increase of 110 days or 5.2% over the same period of last year. Among which jack-up rigs operated 1,997 days, increasing by 86 days over the same period of last year, which was primarily attributable to the 4 rigs, including COSL921, COSL922, COSL936 and COSL937, which added 102 days to this period. Other rigs operated 16 days fewer than the same period of last year affected by the market. The number of operating days of semi-submersible drilling rigs increased by 24 days to 228 days, mainly because the number of repair and maintenance days decreased by 24 days in this period. Utilization rate in terms of available days for drilling rigs decreased by 5.7% compared with the same period of last year to 94.3% affected by the market. Utilization rate in terms of calendar days increased slightly over the same period of last year to 92.6% due to the decrease of repair and maintenance days. In addition, utilization rate in terms of calendar days of two accommodation rigs reached 100.0%. The four module rigs operated in the Gulf of Mexico operated 115 days in aggregate, representing a decrease of 244 days compared with the same period last year due to the impact of an upgrade, with the utilization rate in terms of calendar days decreased to 31.9%. Six land drilling rigs operated 355 days, representing a decrease of 185 days compared with the same period last year due to the fact that the business of the Company in Lybia was suspended because of the unrest in Lybia, with the utilization rate in terms of calendar days decreased to 65.7%. 4
Operation volume of well services decreased slightly due to the market impact. For the first quarter of 2011, the fleet for marine support and transportation services of the Group operated 6,620 days in aggregate, representing an increase of 40 days or 0.6% over the same period of last year, while its utilization rate in terms of calendar days reached 98.5% due to the decrease of non-operating days, representing an increase of 4.6% over the same period of last year. In respect of geophysical services, the operation volume of both the 2D seismic data collection operations and the 3D seismic data collection operations of the Group increased in this period, of which 2D seismic data collection operations increased by 444.2% over the same period of last year, reaching 5,540 kilometers; the main reasons are that the period unsuitable for operation in Bohai was avoided and the vessels were deployed reasonably to operate overseas and in the South China Sea, the time of vessel repair and maintenance decreased. 3D seismic data collection operations increased by 11.2% over the same period of last year, reaching 1,992 square kilometers; this was mainly due to the addition of the submarine cable business which contributed 101 square kilometers. In terms of data processing services, 2D seismic data processing volume increased by 2,237 kilometers or 373.5% over the same period of last year, 3D seismic data collection operations increased by 401 square kilometers or 44.1% over the same period of last year. 3. Significant Events 3.1 Disclosure as to and reasons for, material changes in major accounting items and financial indicators of the Company Applicable Not applicable The reasons for over 30% fluctuations in the major accounts or financial indicators are as follows: 1. Assets impairment losses As of 31 March 2011, the Group has not recognized assets impairment losses while assets impairment losses of RMB59.3 million was recognized in the same period of last year (January - March). 2. Investment income As of 31 March 2011, investment income of the Group amounted to RMB40.0 million, representing an increase of RMB11.0 million or 37.9% compared with RMB29.0 million of the same period of last year 5
, mainly due to a decrease in losses of Eastern Marine Service Ltd by RMB16.9 million over the same period of last year. Investment income from other joint venures decreased by RMB5.9 million in aggregate compared with the same period of last year. 3. Non-operating income As of 31 March 2011, non-operating income of the Group amounted to RMB36.7 million, representing an increase of RMB33.3 million or 979.4% compared with RMB3.4 million of the same period of last year, mainly due to the increase in government subsidies recognized in nonoperating income by RMB23.8 million and the increase in insurance compensation by RMB12.0 million during the period. 4. Cash on hand and at bank As at 31 March 2011, the balance of cash on hand and at bank of the Group amounted to RMB 4,014.7 million, representing a decrease of RMB2,282.1 million or 36.2% compared with RMB6,296.8 million as at the beginning of the year. This was mainly due to the Group s repayment of borrowings of RMB2,106.0 million during the period. 5. Notes receivable As at 31 March 2011, the balance of notes receivable of the Group was RMB1.2 million, representing a decrease of RMB692.0 million or 99.8% compared with RMB693.2 million as at the beginning of the year, which was mainly due to the receipt of RMB692.0 million of notes receivable during the period. 6. Prepayments As at 31 March 2011, the balance of prepayment of the Group was RMB28.4 million, representing a decrease of RMB40.2 million or 58.6% compared with RMB68.6 million as of the beginning of this year. The main reason was that part of the prepayable insurance premium was transferred to cost during the period according to the accepting insurance period by the Group. 7. Staff cost payable As at 31 March 2011, the balance of staff cost payable of the Group was RMB415.1 million, representing a decrease of RMB366.3 million or 46.9% compared with RMB781.4 million as at the beginning of this year. The main reason was that the staff wages, annual bonus, etc. of 2010, included 6
in the balance as at the beginning of the year, had been fully paid in this quarter. The balance as at the end of the period represented staff remuneration which had not been paid to the staff. 8. Other payables As at 31 March 2011, the balance of other payables of the Group was RMB266.9 million, representing a decrease of RMB302.4 million or 53.1% compared with RMB569.3 million as at the beginning of this year. The main reason was that the Group paid the accrued compensations of previous years of RMB194.4 million during the period, and part of the special funds disbursed by the State and special contract amounted to RMB66.0 million. 9. Net cash flows from operating activities As of 31 March 2011, the net cash inflow from operating activities of the Group was RMB1,238.8 million, including cash received from sale of goods and rendering of services amounted to RMB3,725.1 million, tax refund received amounted to RMB61.4 million, cash paid for goods and services amounted to RMB1,163.0 million, cash paid to and for employees amounted to RMB852.1 million and cash paid for taxes amounted to RMB286.5 million. The aggregated net cash paid for other operating activities was RMB246.1 million. 10. Net cash flows from investing activities As of 31 March 2011, the net cash outflow from investing activities of the Group was RMB1,255.4 million, which was mainly attributed by cash paid for acquisition of fixed assets, intangible assets and other long-term assets amounted to RMB1,304.4 million during the period. Besides, the Group received return on investments income and interest income from bank deposits amounted to RMB31.3 million and RMB17.7 million respectively during the period. 11. Net cash flows from financing activities As of 31 March 2011, the net cash outflow from financing activities of the Group was RMB2,200.6 million, which was mainly resulted from cash received from government grants amounted to RMB17.2 million during the period, and cash paid for repayment of borrowings amounted to RMB2,106.0 million, and cash paid for interest expenses amounted to RMB111.8 million. 12. The effect of foreign exchange rate fluctuation on cash during the period was a decrease of cash by RMB64.4 million. 7
3.2 Significant events and analysis on their effects and solutions Applicable Not applicable 3.3 Status of performance of undertakings made by the Company, shareholders and beneficial controllers Applicable Not applicable 3.4 Profit warning on anticipation of possible loss against accumulated net profit from the beginning of the financial year to the end of the next reporting period or significant changes in profit as compared with that of the corresponding period of last year and the reasons therefore Applicable Not applicable Corporate Representative: Li Yong China Oilfield Services Limited 28 April 2011 8
4.Appendix Balance Sheet 31 March 2011 Prepared by: China Oilfield Services Limited Unit: Yuan Currency: RMB (Unaudited) Items Balance at the end of the period Consolidated Balance at the beginning of the year Balance at the end of the period Company Balance at the beginning of the year Current assets: Cash on hand and at bank 4,014,710,468 6,296,792,698 2,723,024,691 4,803,971,111 Notes receivable 1,150,000 693,190,621 1,150,000 693,190,621 Accounts receivable 4,237,308,638 3,460,751,504 4,276,031,802 3,633,312,846 Prepayments 28,427,661 68,630,499 8,392,762 34,439,985 Dividend receivable 24,000,000 24,447,240 24,000,000 24,447,240 Interests receivable 4,634,699 5,752,228 4,575,958 5,314,222 Other receivables 394,485,870 432,679,124 728,660,923 564,791,765 Inventories 842,987,178 815,539,945 588,976,967 588,314,143 Current portion of non-current assets 37,525,391 37,904,858 - - Total current assets 9,585,229,905 11,835,688,717 8,354,813,103 10,347,781,933 Non-current assets: Long-term equity investments 491,386,980 482,233,820 7,711,854,396 7,247,548,719 Fixed assets 30,817,489,712 31,542,443,089 15,246,445,833 16,001,100,461 Construction in progress 14,887,683,834 14,420,081,308 4,308,983,815 3,994,363,510 Intangible assets 396,738,624 409,834,183 304,142,347 310,626,956 Goodwill 4,417,349,020 4,462,018,387 - - Long-term prepaid expenses 419,774,752 434,767,747 291,713,687 382,609,411 Long-term receivables - - 21,078,826,000 21,291,980,500 Other non-current assets 6,588,028 6,265,008 - - Total non-current assets 51,437,010,950 51,757,643,542 48,941,966,078 49,228,229,557 Total assets 61,022,240,855 63,593,332,259 57,296,779,181 59,576,011,490 Current liabilities: Accounts payable 3,188,296,137 3,612,821,584 2,149,994,713 2,589,313,013 Receipts in advance 5,255,901 5,365,901 5,255,901 5,365,901 Staff cost payable 415,071,853 781,374,585 374,716,834 725,468,952 Taxes payable 221,906,480 249,796,473 173,812,174 216,552,074 Interests payable 121,164,313 95,032,922 102,241,418 85,565,856 Other payables 266,904,769 569,294,415 162,238,409 237,340,748 Current portion of non-current liabilities 1,156,112,553 1,224,449,784 552,048,880 612,815,670 Other current liabilities 178,866,386 199,508,214 39,140,834 44,344,313 Total current liabilities 5,553,578,392 6,737,643,878 3,559,449,163 4,516,766,527 9
Non-current liabilities: Long-term bank borrowings 24,788,061,523 27,090,538,733 24,788,061,523 27,090,538,733 Long-term bonds 1,500,000,000 1,500,000,000 1,500,000,000 1,500,000,000 Deferred tax liabilities 1,758,298,685 1,716,051,787 537,845,898 458,036,207 Other non-current liabilities 936,155,892 959,173,166 193,025,602 207,353,707 Total non-current liabilities 28,982,516,100 31,265,763,686 27,018,933,023 29,255,928,647 Total liabilities 34,536,094,492 38,003,407,564 30,578,382,186 33,772,695,174 Shareholders equity: Share capital 4,495,320,000 4,495,320,000 4,495,320,000 4,495,320,000 Capital reserve 8,074,565,726 8,074,565,726 8,074,565,726 8,074,565,726 Statutory reserve funds 1,687,452,367 1,687,452,367 1,687,452,367 1,687,452,367 Retained earnings 12,491,649,486 11,525,749,582 12,486,163,825 11,564,127,603 Including: proposed cash dividends 809,157,600 809,157,600 809,157,600 809,157,600 Cumulative translation reserves (264,385,314) (193,511,048) (25,104,923) (18,149,380) Equity attributable to equity holders of the Parent 26,484,602,265 25,589,576,627 26,718,396,995 25,803,316,316 Minority interest 1,544,098 348,068 - - Total shareholders equity 26,486,146,363 25,589,924,695 26,718,396,995 25,803,316,316 Total liabilities and shareholders equity 61,022,240,855 63,593,332,259 57,296,779,181 59,576,011,490 Chief Executive Officer Executive Vice President General Manager of Accounting and President and Chief Financial Officer Department Li Yong Li Feilong Liu Zhenyu 10
Income Statement January to March 2011 Prepared by: China Oilfield Services Limited Unit: Yuan Currency: RMB (Unaudited) Items Amounts from the beginning of the year to end of the reporting period Consolidated Amounts from the beginning of the year to end of the reporting period Last year Amounts from the beginning of the year to end of the reporting period Company Amounts from the beginning of the year to end of the reporting period Last year 1. Revenue 3,809,390,228 3,930,667,813 2,979,510,531 3,080,400,937 Less: Operating costs 2,477,414,337 2,471,900,759 1,757,332,862 1,877,409,600 Bussiness taxes and surcharges 97,688,558 96,652,642 96,464,389 87,976,675 Selling expenses 1,263,554 1,754,007 545,780 678,193 General and administrative expenses 86,892,541 86,290,373 46,562,122 42,296,342 Financial expenses 100,710,938 124,721,888 112,368,157 130,179,639 Assets impairment losses - 59,290,419-40,011,220 Add: Investment income 39,972,034 29,039,849 43,818,777 65,089,911 Including: Share of profits of jointly-controlled entities 39,972,034 50,089,911 43,818,777 50,089,911 2. Operating profit 1,085,392,334 1,119,097,574 1,010,055,998 966,939,179 Add: Non-operating income 36,660,417 3,427,879 73,474,193 3,427,879 Less: Non-operating expenses 494,310 683,098 242,615 1,354,678 Including: Loss on disposal of noncurrent assets 1,006,211 27,145 206,700 23,814 3.Total profit 1,121,558,441 1,121,842,355 1,083,287,576 969,012,380 Less: Income tax expenses 154,459,022 144,497,054 161,251,354 149,914,404 4. Net Profit 967,099,419 977,345,301 922,036,222 819,097,976 Net profit attributable to equity holders of the Parent 965,899,904 977,345,301 922,036,222 819,097,976 Minority interests 1,199,515 - - - 5.Earnings per share: Basic and diluted earnings per share 0.21 0.22 N/A N/A Chief Executive Officer Executive Vice President General Manager of Accounting and President and Chief Financial Officer Department Li Yong Li Feilong Liu Zhenyu 11
Cash Flow Statement January to March 2011 Prepared by: China Oilfield Services Limited Unit: Yuan Currency: RMB (Unaudited) Items Amounts from the beginning of the year to end of the reporting period Consolidated Amounts from the beginning of the year to end of the reporting period Last year Amounts from the beginning of the year to end of the reporting period Company Amounts from the beginning of the year to end of the reporting period Last year 1.Cash flows from operating activities: Cash received from sale of goods and rendering of services 3,725,099,973 3,745,433,162 2,853,986,955 2,824,442,356 Tax refund received 61,446,571 173,311-37,031 Cash received relating to other operating activities 29,627,076 4,893,202 29,555,994 4,871,810 Subtotal of cash inflows from operating activities 3,816,173,620 3,750,499,675 2,883,542,949 2,829,351,197 Cash paid for goods and services (1,162,954,522) (1,054,459,718) (825,626,456) (755,000,830) Cash paid to and for employees (852,052,887) (681,261,331) (714,647,364) (598,614,070) Cash paid for taxes (286,474,386) (190,786,463) (239,010,099) (148,966,765) Cash paid relating to other operating activities (275,898,559) (35,900,191) (75,102,339) (34,155,908) Subtotal of cash outflows from operating activities (2,577,380,354) (1,962,407,703) (1,854,386,258) (1,536,737,573) Net cash flows from operating activities 1,238,793,266 1,788,091,972 1,029,156,691 1,292,613,624 2.Cash flows from investing activities Cash received from disposal of investments - 19,535,075 - - Cash received from return on investments 31,347,240 47,797,754 31,347,240 40,834,927 Cash received from disposal of fixed assets - 1,196,000-1,196,000 Cash received on interest income from bank deposits 17,658,199 21,339,844 10,376,417 1,965,619 Cash received from other investing activities - - 778,678 - Subtotal of cash inflows from investing activities 49,005,439 89,868,673 42,502,335 43,996,546 Cash paid for acquisition of fixed assets, intangible assets and other long-term assets (1,304,383,680) (1,039,879,910) (919,148,798) (878,694,081) Cash paid for other investment activities - (1,070,000,000) - (1,070,000,000) Cash paid for acquisition of other investments - - - (682,690,000) Subtotal of cash outflows from investing activities (1,304,383,680) (2,109,879,910) (919,148,798) (2,631,384,081) Net cash flows used in investing activities (1,255,378,241) (2,020,011,237) (876,646,463) (2,587,387,535) 3. Cash flows from financing activities: Cash received from government 17,214,000 39,670,000 17,214,000 39,670,000 12
grants and subsidies Cash received from new borrowings - 1,182,690,000-1,182,690,000 Subtotal of cash inflows from financing activities 17,214,000 1,222,360,000 17,214,000 1,222,360,000 Cash paid for repayment of borrowings (2,106,000,000) (582,262,515) (2,106,000,000) - Cash paid for interest expenses (111,769,411) (216,922,985) (106,114,437) - Cash paid for other financing activities - - - (129,779,094) Subtotal of cash outflows from financing activities (2,217,769,411) (799,185,500) (2,212,114,437) (129,779,094) Net cash flows used in financing activities (2,200,555,411) 423,174,500 (2,194,900,437) 1,092,580,906 4. Effect of foreign exchange rate fluctuation on cash and cash equivalents (64,445,014) (56,689,998) (38,508,612) (34,986,142) 5. Net increase/(decrease) in cash and cash equivalents (2,281,585,400) 134,565,237 (2,080,898,821) (237,179,147) Add: Cash and cash equivalents at the beginning of the period 5,847,164,484 3,214,602,911 4,399,216,464 1,750,110,504 6. Cash and cash equivalents at the end of period 3,565,579,084 3,349,168,148 2,318,317,643 1,512,931,357 Chief Executive Officer Executive Vice President General Manager of Accounting and President and Chief Financial Officer Department Li Yong Li Feilong Liu Zhenyu 13